By Most landlords in England operate as private individuals rather than as part of a company or organisation, making up 95 per cent of total landlords, according to the recent Private Landlords Survey published by the Ministry of Housing, Communities and Local Government (MHCLG).
Meanwhile, 45 per cent of landlords own just one property representing only 21 per cent of the private rented sector. A further 38 per cent of landlords who own between two and four properties represent 31 per cent of the sector while the remaining 17 per cent of landlords, with five or more properties, own 48 per cent of the private rented sector.
The proportion of landlords with just one property has declined since 2010, falling from 78 per cent to 45 per cent. This is a fall in private sector representation from 40 per cent to 21 per cent, according to the recent data.
Meanwhile, the proportion of landlords with five or more properties has increased from 5 per cent to 17 per cent since 2010. This is a rise in representation from 30 per cent to 48 per cent.
The figures show that 46 per cent of landlords chose this investment option because they preferred property over other investments and 44 per cent did so to contribute to their pension. However, only 4 per cent became a landlord to let property as a full-time business, according to the recent data.
Although 53 per cent of landlords bought their first rental property with the intention of renting it out, 32 per cent had chosen to live in it themselves initially.
Landlords aged 55 years or older make up 59 per cent of total landlords and 33 per cent are retired, according to the survey. The average length of time that landlords let property was 11.5 years with some 70 per cent of landlords having let property for six years or more.
In terms of income, landlords, on average, report a gross rental income of £15,000 per year before tax and other deductions. Also, 61 per cent of landlords had gross rental income of less than £20,000, while a further quarter 26 per cent reported between £20,000 and £49,999. Meanwhile, 13 per cent reported a gross rental income of £50,000 or more, according to the recent data.
For most landlords, income from rent makes up 42 per cent of their total gross income, according to the Private Landlords Survey published by the Ministry of Housing, Communities and Local Government (MHCLG).
When it comes to funding, 63 per cent of landlords who had been a landlord for three years or less used a mortgage to fund their first rental property and 49 per cent of those who had been a landlord for three years or less had a Buy-to-Let mortgage to fund their current property or properties. This increased to 58 per cent of those who had been letting for between four and 10 years, and 54 per cent for those letting for 11 or more years.
Over the next two years, 53 per cent of landlords are planning to keep the number of their rental properties the same, with 11 per cent planning to increase the number of the properties they own. However, 10 per cent of landlords are planning to reduce the number of their properties, representing 18 per cent of tenancies. A total of 5 per cent of landlords are planning to sell all their rental property and leave the rental business altogether, representing 5 per cent of tenancies, according to the recent survey.
Letting practices also vary between private landlords and agents according to the survey. For instance, agents are more likely than private landlords to increase rent for a new tenant or tenancy renewal, as well as require a larger deposit. Indeed, half of agents increased the rental price to a new tenant compared to only 42 per cent of landlords.
Also, 70 per cent of landlords kept the rent the same compared to 63 per cent of agents. A third of agents increased the rent for existing tenants, compared to 22 per cent of landlords.
Finally, the figures show that private landlords are less likely to let to certain tenant groups than agents are. This encompasses those who receive housing benefits, Universal Credit, non-UK passport holders and families.
Some 52 per cent of private landlords are less willing to let to those who receive housing benefits compared to 37 per cent of agents who said the same, while 47 per cent of landlords and 33 per cent of agents said that they would be unwilling to let to anyone on Universal Credit.
Interestingly, a quarter of private landlords and 10 per cent of agents are unwilling to let to non-UK passport holders, while 18 per cent of private landlords and 6 per cent of agents are unwilling to let to families.
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